TOP STARTUP TRENDS OF 2023

INTRODUCTION

The startup landscape is constantly evolving and adapting to new challenges and

opportunities. In a fast-paced and competitive environment, startups need to be

agile, innovative and resilient to survive and thrive. Startups also need to

leverage the latest technologies, tools and trends to create value for their

customers, partners and investors. Following are some of the top startup trends:

1) Rise in Biotech Startups: The value of the biotech industry has reached

$414 billion and it may increase further as DNA analysis becomes more

accessible and sophisticated. DNA testing has become popular in the past

ten years for tracing one's ancestry. But soon our DNA may also guide

our future actions. For instance, DNA Nudge (a British DNA testing

company) offers a cheek swab DNA test, a mobile app and a DNA Band

for one’s wrist. By analysing one’s genetic makeup, this innovative

technology can provide one with personalised nutrition advice. But the

benefits of DNA testing are not limited to dietary guidance. This field

may also leverage artificial intelligence to design optimal fitness

programs for each individual.

2) Digital Innovation and Africa: A new wave of startups and venture

capital funding is sweeping across Africa. The continent, once considered

too challenging for many entrepreneurs, offers a huge opportunity for

innovation and impact. According to Partech (a Global investment firm),

African startups raised $2 billion in VC funding in 2020. One example is

Twiga Foods, a Kenya-based company that is building a food distribution

network and infrastructure, along with a mobile app for trade and

inventory management. The startup, which has received backing from

Goldman Sachs, currently connects 17,000 farmers in Kenya to 35,000

vendors. And this number is growing fast.

3) Sustainable finance: Sustainable finance refers to the practice of

allocating capital with environmental and social outcomes in mind. This

field is gaining more recognition and popularity (Bloomberg estimates its

market size at $30 billion). Along with this growing trend, many related

searches under this broad term are also rising. One example of a

successful food startup is Beyond Meat, which has gained a lot of

popularity with its plant-based burger that mimics the appearance, texture

and flavour of beef.

4) Proven business models and their rise: The food delivery app market

has been validated by the success of companies such as Uber Eats,

GrubHub and DoorDash. Similarly, Uber and Lyft have disrupted the

conventional taxi industry with their ride-hailing apps. These spaces are

now witnessing a fierce competition among new entrants who are trying

to dominate different regions of the world with the same proven business

models. One notable example is Glovo. This Spanish startup, which has

secured $1.2 billion in funding, appears to be just another food delivery

app at first glance. However, they are not only operating across Europe,

but also expanding their presence in South America and North Africa.

They deliver not just food, but anything from a smartphone to even

flowers and pet food.

5) Boom in No-Code startups: Building digital products is now more

accessible than ever, thanks to companies like Zapier that offer no-code

solutions. Webflow, another platform that enables no-code development,

has secured a reported $334.9 millions in funding, according to

Crunchbase. In essence, these platforms enable one to build “no code” or

“low-code” custom apps and websites. “No code” means that one can

develop web and mobile applications using a graphical user interface,

instead of programming languages and raw code. No code requires

minimal or no coding skills. Even experienced web developers often use

no code solutions as a fast and efficient way to create apps. For instance,

Makerpad (a subscription service) has witnessed fast success as a tutorial

platform for entrepreneur building without any code.

6) Sharing economy: The sharing economy is a major trend that emerged in

the past decade, as businesses leveraged underutilised assets to create

new value propositions. A prominent example is Airbnb, which enabled

homeowners to monetize their vacant properties by offering them as

alternative accommodation options for travellers. This disrupted the

traditional hotel industry, as Airbnbs often provide lower costs and higher

comfort for many guests. As the sharing economy matures, new startups

are exploring its potential in other domains. One such startup is Cloud

Kitchens, founded by former Uber CEO Travis Kalanick, which provides

shared kitchen spaces for delivery-only restaurants. By offering low-cost

and adaptable spaces for emerging food ventures in high-demand areas,

these versatile kitchens enable them to tap into the growing market of

food delivery, without requiring a large upfront investment.

7) Convenience reigns: A possible paraphrase is customers today demand

excellence in delivery and service, following the example of Amazon.

They value convenience and speed above all else. Startups that cater to

this need and put the customer’s convenience first will succeed. Lensabl

is a great case in point. This online startup offers a prescription lens

replacement service that is digital-first. They have an estimated annual

revenue of $12.5 million, according to Owler. One can take their online

eye exam from the comfort of home. One can also send them any frames

that one has and they will fit them for the customer.

8) Agtech innovations: Regenerative agriculture goes beyond sustainable

agriculture, which only preserves the current state of soil and ecosystems

(often already damaged). The goal of regenerative agriculture is to

enhance the soil and undo the environmental harm caused by humans

through a self-sustaining process. Agtech innovations can support this

transition, such as IoT soil sensors that monitor aeration and respiration.

One of the most successful ventures in the digital livestock technology

sector was Antelliq, which had a $2.4 billion exit. With their innovative

smart tag solutions, they enabled farmers to track and monitor cows more

efficiently.

9) Focus on Personalization: Deloitte reports that personalizing products or

services can boost a company sales by at least 10%. This is true even

when the personalized product costs more than the standard ones.

customize their shoes for a 30-50% premium. This has resulted in more

loyal customers for the brand. The "Nike Makers' Experience & quot; offers a similar service, but in person. It uses AI, augmented reality and image

projection to display the customised shoes on the customers’ feet as they

make changes in real time. Then it produces the shoes on the spot in

about an hour and a half.

CONCLUSION

Hence, these were the top startup trends of Startups all around the world. These

trends can help one increase the odds to find the next Unicorn (or Decacorn).

Newer technologies shall continue to cause massive changes in the startup

world.

Adv. Anjul Singh Credits